Areas of the country suffered from mass unemployment. Which had come about due to the decline in the staple industries such as coal, iron and shipbuilding. In Jarrow for example, unemployment was above 70%. Problems were so bad in Jarrow that a 26 day hunger march was undertaken in order to petition Parliament.

The 1930s are seen as the beginning of the north-south divide. In 1932 unemployment in the South East was 14.3% whilst in the North East it was 28.5%.

Even the new industries suffered from seasonal unemployment, in the winter employees were laid off from car manufacturing when demand was lower.